The Houston-based construction company that signed on to build the residential tower known as the Ashby high-rise despite searing neighborhood opposition has withdrawn from the project.

Linbeck Group said Thursday it has parted ways with the developers based on "technical issues" involving the ability to control the construction process.

"We got engaged because we wanted to minimize construction impact on the neighborhood. Our extensive pre-construction work to-date has been focused on this goal," executive chairman Leo Linbeck III said in a statement.

"But for us to be successful, it is essential for us to have control during construction. We were not able to reach an agreement ... that would assure us of our ability to control the construction process."

The developer said Linbeck's withdrawal will result in a short delay, but that the project is still moving forward. "The process of identifying a new contractor is well under way," said Matthew Morgan of Buckhead Investment Partners.

The 21-story building, designed with 228 high-end rental units and a restaurant, is planned for the site of the Maryland Manor apartment complex at 1717 Bissonnet.

As of this week, the complex is vacant and demolition could begin as early as the beginning of May, Morgan said.

For years the developers have met with fierce protests by a group of residents from the area, just north of Rice University.

The opposition continued even after Mayor Annise Parker said the city could do nothing to stop the project.

The mayor issued a statement Thursday saying she will continue to monitor the project.

"The city's goal is to do all it can within its existing legal parameters to protect the interests of the neighborhood," Parker said. "My personal position is the same as it has been from the beginning; this is not the right site for a project like this."

City Councilwoman Ellen Cohen, who represents the area, said Linbeck told her office Thursday morning about his decision.

Cohen said the overall attitude of the residents toward the project has not shifted.

"I would think that the community probably would be pleased to the extent that it probably delays the onset of tearing it down a little bit, but that's as far as I know," she said. "I don't see anything changing except the timeline."

Linbeck Group's involvement in the development surprised some, because Leo Linbeck III happens to live near the site.

When the company was hired last year, it said the project would be technically challenging and the firm would "be able to do the best job of mitigating the impact of the construction process."

The developer said there are no hard feelings between the firms now that they have parted ways.

"We think Linbeck is a great company and we want to do something with them in the future," Morgan said. "There's no animosity there."